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How does a country's economic geography evolve along the development path? This paper documents recent employment growth in 18,961 regions in eight of the world's main economies. Overall, market potential is losing importance, and local density is gaining importance, as correlates of local...
Persistent link: https://www.econbiz.de/10013310242
Are location-specific factors--such as the education and attitude of the local workforce, supplier networks, institutional infrastructure, and local "culture"--important for understanding persistent heterogeneities among firms? We address this question in the context of the automobile industry....
Persistent link: https://www.econbiz.de/10013066220
In the automobile industry, as in many tradable goods markets, firms usually earn their highest market share within their domestic market. The goal of this paper is to disentangle the supply- and demand-driven sources of the home market advantage. While trade costs, foreign production costs, and...
Persistent link: https://www.econbiz.de/10013014669
While there is a vast body of research on the benefits of FDI in developing countries, whether and how the form of FDI matters have received limited attention. This paper studies the impact of FDI via quid pro quo (technology for market access) on facilitating knowledge spillover and quality...
Persistent link: https://www.econbiz.de/10014094631
offshoring in the short run and in the long run (when technology levels are endogenous). The short-run analysis shows that when … research efforts in response to increased offshoring. In particular, the rich country always gains from increased fragmentation …
Persistent link: https://www.econbiz.de/10012759968
integration of commodity markets (i.e., free trade) and international integration of factor markets (i.e., offshoring). In a two …-country, two-good, two-factor model we show that free trade and offshoring have opposite effects on rich-country workers. Free … trade hurts rich-country workers, while reducing the volatility of their wages; by contrast, offshoring benefits them, while …
Persistent link: https://www.econbiz.de/10013152563
The impacts of inward FDI on host countries are frequently studied using balance-of-payments based measures of flows and stocks. These are unreliable for the purpose because, while theories of the effects of investment are based on FDI production and employment in the host country, these...
Persistent link: https://www.econbiz.de/10012760473
Employment at multinational enterprises (MNEs) responds to wages at the extensive margin, when an MNE enters a foreign location, and at the intensive margin, when an MNE operates existing affiliates. We present an MNE model and conditions for parametric and nonparametric identification. Prior...
Persistent link: https://www.econbiz.de/10013227778
of these organizational forms. Better contracting institutions in the South raise the prevalence of offshoring, but may … reduce the relative prevalence of FDI or foreign outsourcing. The impact on the composition of offshoring depends on whether …
Persistent link: https://www.econbiz.de/10012778138
We use firm-level data on U.S. multinationals to show how offshoring affects domestic employment within and across … firms. We introduce a new instrument for offshoring: Bilateral Tax Treaties, which reduce the cost of offshore activities … in employment at the U.S. parent firm, with smaller effects at the industry and regional levels. In contrast, offshoring …
Persistent link: https://www.econbiz.de/10012945157